On August 2nd, Donald Trump announced tariffs on $16 billion worth of Chinese imports.  This was in addition to July’s announcement of tariffs on $34 billion worth of Chinese imports.  The 25% tariffs on the second tranche of goods went into effect on August 23rd.

Creating Economic Uncertainty

Among the goods being affected by this tariff is vinyl film—a critical component in thousands of products including laminate flooring, awning, tents, medical fluid bags, etc. Manufacturers of these products can only pass on so much of the increased costs to their customers. These companies will have to cut corners elsewhere.

For manufacturers utilizing vinyl film, this tariff has caused much speculation and sector uncertainty. When uncertainty exists in any market, it’s not uncommon for industry stakeholders to take on a wait-and-see attitude. Current production will likely continue, but industry expansion will likely be put on hold until everyone has a better understanding of the actual consequences on pricing and supply.

Those companies who already source most of their vinyl film from U.S. companies will face the least uncertainty within their industries. This is something to keep in mind when considering your next move. When you source vinyl film from U.S. producers like Presco, you remove much of the uncertainty being generated by the new tariffs.

The Presco Advantage

Based in Sherman, Texas, Presco is America’s premier manufacturer of safety marking products and custom engineered vinyl film.   Presco’s subsidiary, Pres-Flex, compounds and extrudes flexible vinyl film in Sherman, Texas.  By sourcing engineered vinyl film from Presco/Pres-Flex, businesses can minimize costs while filling gaps the tariffs may create in supply chains. Additionally, products made in the U.S. provide many benefits sourcing overseas doesn’t, including better traceability of materials moving through the supply chain, a reduction or complete elimination of quality issues, and ensures quick responses to any bad material situations. Further, higher-quality American-made vinyl film will also result in higher-quality manufactured end-products.

If you find your operations facing a disruption in its vinyl film supply because of the newly imposed tariffs on Chinese goods, Presco/Pres-Flex is here to help!

To learn more about how Pres-Flex can help you with your vinyl film needs, visit them at www.pres-flex.com today!